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Computing and Analyzing Liquidity and Solvency Ratios Selected balance sheet and income statement information follows for the 5-M Company. 5-M Company $ millions Dec 31,
Computing and Analyzing Liquidity and Solvency Ratios Selected balance sheet and income statement information follows for the 5-M Company. 5-M Company $ millions Dec 31, 2020 Dec 31, 2019 Income statement information: Interest expense $715 $256 Income before interest and taxes 34,035 10,703 Balance sheet information: Cash 9,889 3,794 Marketable securities 4,484 2,590 Accounts receivable 21,225 9,964 Current assets 65,916 24,606 Current liabilities 28,472 195,046 100,660 11,928 57,737 Total assets Total liabilities 33,424 Total stockholders' equity 94,386 24,313 a. Compute the following ratios for the fiscal years ended December 31, 2020, and December 31, 2019. Enter the answers rounded to two digits after the decimal; for example, enter 1.42 for 1.424, or 1.43 for 1.425. a. Compute the following ratios for the fiscal years ended December 31, 2020, and December 31, 2019. Enter the answers rounded to two digits after the decimal; for example, enter 1.42 for 1.424, or 1.43 for 1.425. 0 2020 2019 1. Current ratio 0 0 2. Quick ratio 0 0 3. Total liabilities-to-equity 0 4. Times interest earned 0 0 b. Comment on the trends from 2019 to 2020 for 5-M company regarding liquidity and solvency, assuming all differences are material. Trends in 2020 as compared to 2019 for the 5-M company indicate a: Indicated by the current ratio Indicated by the quick ratio Indicated by the total liabilities-to-equity ratio Indicated by the times interest earned ratio These results indicate the following when comparing financial conditions 2019 to 2020: Liquidity Solvency Please answer all parts of the
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